June 19 (Reuters) - Hong Kong’s benchmark Hang Seng Index rose on Friday, as Thursday’s legislative veto of a China-backed electoral reform package removed political uncertainty, and is seen by some as positive for the market.
But the China Enterprises Index, which tracks Hong Kong-listed mainland companies, fell, taking cues from a sharp tumble in mainland stocks.
The veto “is interpreted as good news by some investors,” said Chen Zhizhong, strategist at China Merchants Securities.
“But investors’ risk appetite is still weak, as a possible free fall in mainland market could weigh on the Hong Kong market as well.”
The Hang Seng index rose 0.3 percent, to 26,760.53, while the China Enterprises Index lost 0.6 percent, to 13,186.05 points.
Materials and industrials stocks fell, but energy and telecom shares were firm. (Reported by Samuel Shen and Pete Sweeney)